University Policies and Procedures Manual (previously Business Policies and Procedures Manual)

UPPM 70.08

For more information contact:
   Payment Services–Card Programs
   509-335-2034 or 509-335-2032 / purchasing.card@wsu.edu

Forms:

Affidavit of Lost Receipt Change Request Check-Out Log  Temporary Delegation Restricted Purchase Template

Entertainment Exception Request Gift Cards Exception Request Group Travel or Activity Exception Request Restricted Use Exception Request

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1.0  Overview

Washington State University (WSU) supports a procurement environment with multiple tools to facilitate purchasing by departments and colleges. The Procurement Card Program is one of those tools. It is a preferred method of payment because it facilitates timely acquisition of materials and supplies and reduces transaction costs. Users are to read this policy in its entirety before completing the WSU procurement card cardholder agreement.

2.0  Policy

The Procurement Card Program is designed as an alternative to a variety of processes including petty cash, check requests, and low-dollar purchase orders. The Procurement Card Program is not intended to avoid or bypass appropriate purchasing or payment procedures; rather, the program compliments the existing processes available. The University procurement card (also referred to as the pcard) is a Visa credit card that is issued by JP Morgan Chase through the Washington Institutions of Public Higher Education (WIPHE) Contract Clearing House. This Procurement Card policy (UPPM 70.08) provides information about:

• The procurement card process;
• The types of purchases that may and may not be made with procurement cards;
• The records that must be maintained and reconciled for each cycle; and
• A variety of other program information.

The area finance officer (AFO), as assigned in Workday, is responsible for approval of new procurement card applications. The employee’s signature on the Cardholder Agreement in the application indicates that the applicant understands the intent of the program and agrees to adhere to the guidelines established for the program. The card has no impact on the cardholder’s personal credit. Although the card lists an individual’s name, the card is issued to WSU.

Each cardholder is committing University funds each time they use the procurement card. The cardholder is the person responsible for all charges made to the card which has been issued to them. Recordkeeping is essential to ensure the successful use of the procurement card. WSU standard purchasing and payment policies require retention of receipts.

Intentional misuse or fraudulent abuse may result in personal liability and/or disciplinary action up to and including suspension or dismissal of eligibility for University card programs.

To receive the procurement card, the cardholder must first attend all mandated training sessions facilitated by the Card Programs manager. The cardholder must collect and sign for the card at the Payment Services office or provide written instructions for alternate delivery. A photo identification or official WSU e-mail signature is required. The cardholder may begin using the procurement card immediately following receipt and activation.

3.0  Roles and Responsibilities

3.1    Card Programs Administration

Card Programs Administration supports WSU procurement by promoting the procurement card program, ensuring the program’s long-term success, and identifying improvement opportunities.

The Procurement Card Helpdesk e-mail address is the preferred method for contacting Card Programs Administration; e-mail purchasing.card@wsu.edu.

Users may contact the Card Programs Administration manager or specialist by telephone at 509-335-2034 or 509-335-2032.

3.1.a    Card Programs Administration Responsibilities

Card Programs Administration is responsible for:

• Providing training opportunities and materials
• Verifying training compliance
• Revising the Procurement Card policy (UPPM 70.08) as needed
• Issuing procurement cards
• Performing card account changes and cancellations
• Auditing procurement card compliance with WA State and WSU purchasing policies
• Reporting audit results as appropriate (based upon WSU Purchasing and Procurement Card policies; see UPPM Chapter 70 and UPPM 70.08, respectively)
• Managing banking relationship, payments, and card program reconciliations

3.2    Issuing Bank

The issuing bank, JPMorgan Chase, provides procurement cards to WSU.

Note: Only the WSU cardholder or a WSU Card Programs Administrator may contact JPMorgan Chase Cardholder Customer Support to request assistance or information regarding a procurement card; telephone 1-800-316-6056.

3.3    Cardholder

The cardholder (the applying employee, whose name is on the card) is the individual responsible for all card use.

The cardholder acts as a procurement agent of the University and the state of Washington when using the procurement card. The cardholder is accountable for any policy violation associated with the use of their card account.

Note: Any cardholder may perform first-level transaction review to verify their own transactions in Workday, or this responsibility may be assigned to a Procurement Card Data Entry Specialist (PCDES) within their cost center, as determined by departmental preference. The cardholder may or may not have the role of PCDES.

3.3.a    Cardholder Responsibilities

The cardholder is responsible for:

• Adhering to all:
  • WSU policies and procedures governing purchasing (UPPM Chapter 70) and procurement cards (UPPM 70.08);
  • Local, county, state, and federal policies related to purchasing, as referenced in UPPM Chapter 70; and
  • Grant or NCAA policies applicable to the cardholder’s department or funding source(s).
• Protecting the security of the card and account number.

Note: The cardholder must not send the full 16-digit procurement card number, expiration date, or CVV security code through any unsecured communications, such as e-mail or e-mail attachments.

• Retaining all purchasing documentation (receipts/invoices and other supporting documents) for submission during transaction verification in Workday.
• Retaining a delegation log, using the Procurement Card Check-Out Log, if applicable.
• Instructing delegated users regarding appropriate use of cards.
• Providing delegated users with documentation to authorize use of the card, when appropriate. (See Section 5.4.f regarding temporary card assignment or delegated use.)

3.4    Cost Center Manager

The Cost Center (Project, Program, Gift, or Grant) Manager is responsible for reviewing, auditing, and providing final approval of transaction verifications.

Note: The manager approving pcard transaction verifications may not be a cardholder or first-level verifier of procurement card transactions for which they are providing approval.

3.4.a    Responsibilities

The Cost Center (Project, Program, Gift, or Grant) Manager is responsible for the following:

• Adhering to all:
  • WSU policies and procedures governing purchasing (UPPM Chapter 70) and procurement cards (UPPM 70.08);
  • Local, county, state, and federal policies related to purchasing, as referenced in UPPM Chapter 70; and
  • Grant or NCAA policies applicable to the cardholder’s department or funding source(s).
• Providing direction for departmental procurement card use.
• Taking appropriate action in response to a policy violation by a cardholder or PCDES. (See Section 5.8 regarding policy compliance.)

3.5    Procurement Card Data Entry Specialist (PCDES)

The PCDES may perform first level transaction review and/or verification in Workday.

3.5.a    PCDES Responsibilities

The PCDES is responsible for:

• • Adhering to all:
  • WSU policies and procedures governing purchasing (UPPM Chapter 70) and procurement cards (UPPM 70.08);
  • Local, county, state, and federal policies related to purchasing, as referenced in UPPM Chapter 70; and
  • Grant or NCAA policies applicable to the cardholder’s department or funding source(s).
• Protecting the security of card information.

Note: The PCDES must not send the full 16-digit procurement card number, expiration date, or CVV security code through any unsecured communications, such as e-mail or e-mail attachments.

• Any or all aspects of procurement card transaction review, verification, or review and approval of cardholder verifications using the Workday Reporting tools.

3.6    Delegated User

A delegated user is a paid WSU employee (classified, administrative professional, faculty, or hourly employee) authorized by the cardholder to use their procurement card for an individual transaction.

3.6.a    Delegated User Responsibilities

The delegated user is responsible for:

• Adhering to all policies and procedures as explained by the cardholder or other authorized departmental purchasing representative.
• Protecting the security of card information.

Note: The delegated user must not send the full 16-digit procurement card number, expiration date, or CVV security code through any unsecured communications, such as e-mail or e-mail attachments.

• Retaining all purchasing documentation (receipts/invoices and other supporting documents) and submitting these documents to the cardholder or PCDES for submission during transaction verification in Workday.

4.0 Obtaining a Procurement Card

Employees must complete required training in order to obtain and use procurement cards. The Percipio Learning System provides card-related training on the following topics:

• Appropriate use of procurement cards, including restrictions and compliance requirements.
• Documentation requirements.
• Use of the transaction verification system through Workday.

The Percipio Learning System is accessible through Human Resource Services (HRS) Learning and Organizational Development.

4.1    Training Requirements Vary by Program Participant Role

 Refer to Table 1 for training session requirements and access links applicable to each pcard program participant role.

Table 1

Role:	Required Washington (WA) State and WSU Training Courses:
	WA State Small Purchases (Online)	WA State Purchasing and Procurement Ethics (Online)	Procurement Card: New Cardholder (Live Course – Instructor-Led)	Workday Procurement: Verify Procurement Card Transactions (Live Course – Instructor-Led)
Cardholder / Employee as Self	Required	Required	Required	Required
Cost Center Manager	Required	Required	Required	Required
PCDES – Procurement Card Data Entry Specialist	Required	Required	Required	Required
Delegated User	Recommended	Recommended	Recommended	Optional

Access to register for the instructor-led classes is available through the course name links in Table 1.

4.1.a    Applicant Testing or Repeat Training

Based upon a pcard applicant’s trainings and work history, the Card Programs Manager may require the applicant to repeat training or demonstrate knowledge competency by testing, if the applicant has:

• Attended training courses followed by no pcard use or practical application of WSU purchasing and pcard policies within six months;
• Left a position and has no practical application of WSU purchasing and pcard policies for more than six months;
• Transferred to a new cost center and has not attended training in more than five years.

4.2    Spending Limits

Spending limits should be set based upon anticipated departmental spend plus ten percent, to reduce the risk of fraud to cardholders, departments, and the University, and also meet the purchasing needs of the department.

The applicant selects a standard monthly credit limit set when completing the Procurement Card Application. (See Table 2 to access application forms.) Limits should then be adjusted to more accurately reflect the department’s purchasing needs, by submitting an approved Procurement Card Change Request to purchasing.card@wsu.edu.

4.2.a    Single Transaction Limit

Each procurement card is assigned a maximum single transaction limit (also referred to as single amount limit or single purchase limit).

When applying for a procurement card, the applicant discusses the department’s single transaction needs with their supervisor and selects the application “set” that best meets their department’s purchasing needs as determined by the applicant’s department. (See Table 2 for application set limits and form access.)

Note: Users of procurement cards may not circumvent the card’s single transaction limit or Washington State’s $10,000 direct buy limit by dividing orders into multiple transactions from the same supplier. (See UPPM 70.13 for current direct buy limit information.)

Each procurement card is assigned a monthly credit limit.

When applying for a procurement card, the applicant discusses the department’s single transaction and monthly credit needs with their supervisor and selects the application “Set” that best meets their department’s purchasing needs as determined by the applicant’s department. (See Table 2.)

4.2.b    Merchant Category Code Blocks

To reduce the risk of fraud, each procurement card is automatically activated with merchant category code (MCC) blocks in place. Transactions attempted with merchants who provide the merchandise types below are declined.

• Transportation providers (e.g., airfare, passenger railways, bus transport, travel, and tour)
• Banking providers (e.g., cash advances, gift cards, automated teller machines (ATMs), money orders)
• Extravagance items (e.g., jewelry, watches, clock repairs, furriers, dating/escort, lottery/betting)

To request temporary removal of MCC blocks the department must:

• Submit the completed Procurement Card Change Request to Card Programs; e-mail card@wsu.edu (preferred); or campus mail to French Administration 240K, mail code 1025; and
• Attach the completed and signed form to the Workday Procurement Card Transaction Verification for a purchase related to an exception to policy. (See Section 5.3 regarding exception to policy requests.)

Card Programs may request Purchasing Services consultation regarding any exception to policy requests.

4.3    Procurement Card (PCard) Application

Once required trainings are completed, a procurement card applicant completes an application form on the J.P. Morgan website by selecting the link for the limits set for which they would like to apply. (See Table 2.) The procurement card application process includes acceptance of both the terms and conditions and a cardholder agreement in the application form.

Note: The WSU procurement card is issued in the name of the cardholder. This practice assures greater accountability and a higher level of fraud protection.

When applying for a procurement card:

1. The applicant discusses the purchasing needs of the department with their direct supervisor;
2. The direct supervisor consults with the area finance officer to determine the purchasing levels for the cardholder; and
3. After the purchasing levels are determined, the employee may submit an application for a pcard.

The direct supervisor and area finance officer (or delegated approver) must both approve the card application and limits before Card Programs orders the pcard.

4.3.a    Procurement Card Application Standard Limits Sets

Table 2

Set A (Set A limits application form)		Set B (Set B limits application form)
Monthly credit limit:	$5,000	Monthly credit limit:	$30,000
Daily transactions allowed:	10	Daily transactions allowed:	10
Single transaction limit:	$3,500	Single transaction limit:	$10,000

Limits may be adjusted to any levels below or between the Set A or Set B limits sets, to meet the purchasing needs of the department.

Submit a Procurement Card Change Request form to Card Programs to request an adjustment; e-mail purchasing.card@wsu.edu (preferred); campus mail WSU Pullman mail code 1025, French Administration 240K.

Card Programs may grant limits above Set B in rare cases on a temporary basis with suitable justification.

• Requests for limits above Set B may be discussed with Purchasing Services for consideration and approval.
• Justification of requests for long-term limits above Set B are considered if temporary increases are required more than one time per month.
• If cards with long-term limits above Set B do not demonstrate consistent need for these higher limits (more than one time per month), and the risks associated, card limits are likely to be reset to Set B, and the cardholder notified of the change.

Note: Long-term limits adjustments above Set B are effective for no longer than two-years, as determined by Purchasing Services.

4.3.b    Requesting Changes to Card Accounts

Changes may be requested in writing if seeking to:

• Increase or reduce card Limits, including:
  • Monthly credit limit
  • Daily transactions allowed
  • Single transaction maximum limit (STL)
• Temporarily suspend a card
• Permanently cancel a card
• Change cardholder personal information

For changes, submit a completed and approved Procurement Card Change Request form to Card Programs; e-mail purchasing.card@wsu.edu (preferred); campus mail WSU Pullman mail code 1025, French Administration 240K.

4.3.c    Change Approver Roles

Changes must be approved as follows, depending on change amounts and approver roles:

Acceptable Change Approver	Temporary Changes < $30,000 per month <$10,000 Single Transaction	Permanent Changes < $30,000 per month <$10,000 Single Transaction	Temporary Changes * > $30,000 per month > $10,000 Single Transaction	Permanent Changes * > $30,000 per month > $10,000 Single Transaction
AFO	Yes	Yes	Yes	Yes
Cost Center Manager	Yes	Yes	Yes, if delegated by AFO	No
Supervisor	Yes	Yes	No	No

* Card Programs requires consultation with Purchasing Services for changes requested to accommodate purchases above the Washington State $10,000 direct buy limit (for single transactions) if:

• No WSU contract or purchase order is in place for the proposed purchase; or
• No sole source contract or DES sole source contract exemption is in place for the proposed purchase.

See UPPM 70.01 and 70.50.

5.0 Using a Procurement Card

The following requirements apply to the use of a procurement card:

• A cardholder is accountable for purchases made on the card issued in their name.
• The card is to be used for official University business only to purchase allowable goods and services.
• The cardholder must observe the single transaction limit and monthly credit limit assigned to the procurement card account.
• Dividing purchases into multiple transactions to stay below the Washington State $10,000 direct buy limit or the card’s single transaction limit is prohibited.
• Personal purchases violate the terms of the cardholder agreement. See Section 5.2 regarding restricted purchases.
• Establish separate departmental accounts for University purchases with online merchants or purchasing websites for which employees may have personal accounts (e.g., Amazon).
• Personnel must not enter WSU procurement card data as a payment method in a personal online purchasing account (such as Amazon). Contact Payment Services–Card Programs for further assistance.
• Establish separate departmental accounts for University purchases through third-party payment processors for which employees may have personal accounts (e.g., PayPal, Venmo).
• WSU personnel must not save WSU procurement card data as a payment method in a third-party pay platform. This information must be entered manually each time the platform is used.

5.1    Sponsored Projects

• Principal investigators (PIs) are responsible for purchasing goods and services which are allowable under the terms of applicable grants or contracts.
• Cardholders must obtain authorization from PIs before making purchases on accounts supported by grants or contracts.

5.2    Restricted Purchases

Use of the procurement card is restricted for the following goods and services:

5.2.a    Alcohol

Restricted alcohol purchases include:

• Alcohol for consumption

Note: For nonconsumption use, purchase denatured alcohol (e.g., ethlyl alcohol) when possible and applicable. (See UPPM 70.22.)

• Meals served with alcoholic beverages

5.2.b    Beverages

Water for employee consumption when in the normal practice of daily work, where potable water is available. Environmental Health and Safety determines whether the available water is potable and accessible.

5.2.c    Gifts

Restricted gift purchases include:

• Donations
• Gift cards that are not purchased and used in accordance with UPPM 70.44.
• Gifts (unless the purchases are allowed by and charged to discretionary funding; see UPPM 70.33).

5.2.d    Restricted Materials

Restricted materials purchases include:

• Controlled substances
• Prescription medications

Note: Prescription medications are allowable procurement card purchases for units with dispensing pharmacies or trained medical staff.

Exception: Epinephrine autoinjectors are allowable procurement card purchases for authorized units. See SPPM 2.42 and 6.15.

• Radioactive materials
• Weapons, ammunition
• Fuel for University-owned equipment, machinery, or vehicles, and privately-owned or rental vehicles

Notes:

• • See UPPM 95.37 for fuel purchase procedures.
  • Charging WSU-owned or rented electric vehicles is an allowable purchase on both the pcard and the fuel card.

5.2.e    Restricted Payments

Restricted payments include:

• Cash advances
• Payments to individuals, employees, students (for services rendered, stipends, etc.)
• Personal employee relocation expenses
• Transactions divided to circumvent the procurement card’s single transaction limit or the Washington State direct buy limit
• Personal purchases

•  

5.2.f     Travel

Restricted travel purchases include reimbursable employee travel expenses (e.g., transportation, lodging, hotel reservations, meals).

Note: The University recommends that departments use Central Travel Accounts (CTAs) to purchase transportation services (airline, rail, and bus/motorcoach) for University business travelers. (See UPPM 95.04 for CTA application and use procedures.)

Exceptions: The following travel-related payments are allowable:

• Short-distance transportation services, e.g., ferries, taxies, shuttles.
• Payment of Washington “Go-Pass” road toll fees.
• Conference registration fees that may include lodging costs (see UPPM 95.05).

Notes:

• • Ensure that the food and lodging costs are in alignment with the travel per diem rates policy (see UPPM 95.19).
  • Direct billing for lodging is preferred, as outlined in UPPM 95.06.
  • University-related copying services for employees in travel status (see UPPM 80.05
  • Nonemployee travel and travel expenses (e.g., hotel reservations, ground transportation, and lodging).

For questions, contact Travel Services; e-mail travel@wsu.edu; telephone 509-335-2038 or 509-335-2059.

5.2.g    Equipment and Furnishings

Restricted equipment and furnishings purchases include:

• Air conditioners (Use Requisition; see UPPM 70.10)
• Appliances for breakrooms or personal use, e.g., coffee makers, refrigerators, microwave. (See Section 5.2.g for related exception.)
• Furnishings which must be purchased through Facilities Services, Operations, in accordance with UPPM 70.01, 70.10, and 80.45, i.e.:
  • Carpeting
  • Floor coverings
  • Window coverings
  • Furniture requiring connection to a building
  • Capitalized equipment (see UPPM 20.50 for definition). See also SAAM Chapter 30 and Section 5.6.b regarding small equipment purchases.
  • Equipment purchased with equipment trade-in credit (see UPPM 70.12)
  • Equipment qualifying for tax-exemption or tax deferral (see UPPM 70.42)
  • Vehicles, trailers, and vessels (i.e., equipment with titles and licensing (see UPPM 70.40)

Note: Payments for the cost of titles and licenses are allowed on pcards.

Exception: A department may use FN057 funds to purchase a single economically-priced refrigerator or microwave for any employee breakroom that is without one. (See UPPM 70.33.)

5.2.h    Services

Restricted purchases for services rendered include:

• Honorarium, speaker, or consulting fees (must be paid by invoice submission in Workday)

Note: See the Workday reference guides How Do I Create an Honorarium Payment and Create Supplier Invoice Request. See also UPPM 95.25 regarding speaker fees.

• Funds transferred to internet accounts to pay web services workers or survey respondents (applies to any type of freelance web services or sites).
• Nonemployee labor for services subject to prevailing wages (e.g., carpentry, electrical, plumbing).
• Telephone services, including cellular telephone services and hardware for accounts not owned by the University.

Note: Payment of University-owned cellular device account monthly charges is allowable; see UPPM 85.45. The department should set up these monthly costs to charge automatically to the applicable pcard.

5.2.i     Contracts

Payment for contracts not signed by delegated authorities are restricted unless:

• There is an approved exception.
• The contract is for copier payments and associated use charges.

Copier lease payments and associated use charges on invoices are allowable expenses and do not require a request for an exception.

See the Workday Copier Contract Payments by PCard reference guide for procedures.

(Note: Payments for short-term, small equipment rentals are allowed.)

5.2.j     Internal Purchases

Purchases from internal WSU departments are restricted.

• For purchases from internal WSU departments, use the Workday Internal Service Delivery process or Interdepartmental Requisition and Invoice (IRI).
• See the Workday Internal Service Delivery reference guide or UPPM 70.05.

5.3    Exceptions for Restricted Purchases or Payments

The cardholder’s area finance officer (AFO) may grant an exception to a cardholder to allow a procurement card purchase of restricted goods or services included on the restricted purchases list in Section 5.2. The AFO may only grant exception approval prior to a purchase.

5.3.a    Exception Request Forms

Exception Request forms for the following purchases are available. Exceptions may be granted for the following:

• Entertainment
• Gift cards
• Group travel or activity expense
• Restricted (miscellaneous) use

5.3.b    Exception Request Process

Note: The AFO may only grant exception approval prior to a purchase.

To request an exception to purchase a restricted item or service, the cardholder must:

1. Complete the applicable Exception Request form and routes it to the AFO for signature;
2. Submit the approved Exception Request form to Payment Services−Card Programs; e-mail purchasing.card@wsu.edu (preferred); or campus mail submission to French Admin 240K, mail code 1025; and
3. Attach the completed and signed form to the Workday Procurement Card Transaction Verification for the purchase.

See the Workday Procurement Card Exception Requests reference guide.

If an Exception Request is not completed prior to the purchase being made:

1. The cardholder must complete and sign a Restricted Procurement Card Use form;
   1. For delegated purchases, the delegated user’s supervisor must sign the form;
2. The cardholder or verifier must attach the Restricted Procurement Card Use form to the applicable Procurement Card Transaction Verification in Workday; and
3. The cardholder must forward a copy of the restricted use form to Card Programs; e-mail purchasing.card@wsu.edu.

5.4    Placing  Orders

To place an order, present the card to the supplier or enter the procurement card information at the supplier website. Inform the supplier that the purchase is for Washington State University and request that the supplier include applicable discounts.

Request that the supplier send an e-mailed invoice showing zero balance due.

5.4.a    Transaction Declined

If a transaction is declined, the cardholder may:

• Login to JPMorgan Chase’s PaymentNet website to research why the transaction was declined.

Note: For log-in difficulties or new access to the PaymentNet website, contact Payment Services−Card Programs; e-mail purchasing.card@wsu.edu.

• Contact the program specialist or manager in Card Programs for assistance; e-mail purchasing.card@wsu.edu; telephone 509-335-2034 or 509-335-2032.
• Contact the issuing bank’s customer service department to determine the reason the card was declined. The customer service telephone number is located on the back of the procurement card.

5.4.b    Billing Address for All PCards

Provide the supplier with the following billing address for all procurement card transactions:

Washington State University
Purchasing SRVCS
P.O. Box 641020
Pullman, WA 99164-1020

5.4.c    Shipping Instructions

Encourage the supplier to ship the material in accordance with University shipping procedures and discount contracts. See UPPM 80.28.

Provide a complete shipping address, including name, department, building, and room number. Use the street location of the campus central receiving department, if available.

5.4.c.i   Shipping to WSU Pullman

For orders shipped or mailed to a WSU Pullman department, instruct the vendor to include:

• A departmental attention name,
• The name of the department, and
• The location of the department (building and/or campus zip code).

See the label template below for WSU Pullman.

When departmental delivery information is not on the shipping label, Central Receiving and Delivery attempts to determine the identity of the recipient. If the identity is not determined, Central Receiving and Delivery may return the package to the supplier.

5.4.d    Required Documentation

Each purchase must be supported by:

• Documentation of purchase authorization.

Note: If not approved in Workday or a departmental authorization system, the e-mail or online communications authorizing the purchase must be retained.

• Itemized documentation of purchase (e.g., receipt, invoice, packing slip) from the supplier.A digital, web, or e-mail receipt or invoice is acceptable.

Upload all relevant documentation into the Workday transaction verification attachments section.

The itemized documentation of purchase should include each of the following:

• Supplier’s name
• Unit prices
• Itemized description of goods or services purchased
• Total amount of purchase
• Date of purchase

If the receipt includes the total purchase amount only, attach a detailed packing slip or detailed invoice to the receipt.

Note: Instruct the supplier to send the itemized documentation of purchase directly to the department by e-mail and not to Accounts Payable.

5.4.e    Missing Documentation

If the cardholder or delegated user fails to request and retain the merchant-provided receipt or invoice, every effort should be made to obtain replacement documentation.

If unsuccessful, the purchaser must complete and sign an Affidavit of Lost Receipt. The cardholder’s or delegated purchaser’s supervisor and area finance officer must also sign the affidavit.

Note: Use of the Affidavit of Lost Receipt is not best practice and results in closer scrutiny and increased audit of purchasing activities.

Either the cardholder or the PCDES must:

• Attach the signed affidavit to the attachments section of the Workday transaction verification; and
• Forward a copy of the signed affidavit form to Card Programs; e-mail purchasing.card@wsu.edu.

5.4.f     Temporary Card Assignment or Delegated Use

The cardholder may allow another paid departmental employee to check out the procurement card for an individual transaction by completing the following steps:

• Training the delegate,
• Documenting the delegation, and
• Obtaining the purchase documentation.

See also Section 3.6.

5.4.f.i    Train the Delegate

The cardholder trains the delegate in the appropriate use of the procurement card, including all delegated user responsibilities.

Note:  Card Programs encourages employees who are expected to be frequent procurement card delegates to attend and complete procurement card training for new cardholders (see Section 3.3.a regarding cardholder responsibilities and Section 4.1 regarding training).

5.4.f.ii     Documenting the Delegation

5.4.f.ii (A) Temporary Delegation Form

When delegating procurement card use for purchases made at physical, in-person retail locations (where photo ID may be requested), the cardholder is to provide a Procurement Card Temporary Delegation form to the delegate prior to each delegated purchase. Both the cardholder and the delegate must sign the delegation form.

The delegate presents the signed delegation form to the supplier at time of purchase, if needed. The cardholder submits the delegation form to the transaction verifier with the itemized transaction documents.

5.4.f.ii (B) Delegation Check-Out Log

The cardholder records the checkout and return of the procurement card on the Procurement Card Delegation Check-Out Log.

The card holder keeps a checkout log for each card and records the following information:

• The date and time of card checkout
• The merchant name
• The name of the delegate
• The last four digits of the card number

5.4.f.iii    Delegated Purchase Completion

Following the in-person or electronic purchase, the delegate must:

• Return the physical pcard to the cardholder;
• Destroy any copies of the card details;
• Provide the required documentation for the purchase to the cardholder (see Section 5.4.d); and
• Submit a completed Restricted Procurement Card Use form to the cardholder if the items purchased are not exactly as pre-approved.

5.5    Receipt of Shipment

The cardholder is responsible for confirming receipt of the shipment and determining whether the supplier accurately filled the order. (See Section 5.6.e for information regarding discrepancies, fraud, and disputes.)

See UPPM 70.14 for information regarding confirming receipt of shipments, managing damaged shipments, and returning merchandise.

5.6    Special Processes

5.6.a    Food and Light Refreshments

The following procedures apply to purchases of food and light refreshments:

• The cardholder or PCDES is to code light refreshment purchases to accounts that allow food purchases.
• The cardholder or PCDES must calculate allowable per diem rates for food purchases and charge any costs over the allowable per diem rates to a Gift. See UPPM 95.19 for links to the allowable per diem rate tables.
• If the meal is supported with FN057 funds, the cardholder or PCDES follows the procedures in UPPM 70.33.
• If supported with other funds, the cardholder or PCDES follows the procedures in UPPM 70.31 and attaches a completed Request to Serve Food form to the Workday transaction verification.

5.6.b    Small Equipment Purchases

The cardholder or PCDES is to code those equipment items costing less than $5000 each using the spend category SC00041 – Small Equipment Items. Note: The spend category SC000254 is used for laptop computers costing less than $5000.

See UPPM 20.50 for inventory procedures.

5.6.c    Split Coding

The cardholder or PCDES may use split coding to divide the transaction between multiple cost centers (project, program, gift, or grant) during transaction verification. See the Workday Verify Procurement Card Transaction reference guide for instructions.

Note: Split coding is not the same as dividing purchases into multiple transactions to circumvent Washington State’s direct buy limit or the pcard’s single transaction limit. Circumvention of limits is a violation of policy.

5.6.d    Transaction Verification

Within 30 days of receipt of goods or services, the cardholder or PCDES is expected to verify all charges or to provide transaction notes explaining any delay in verification.

Note: The procurement card  manager or specialist may contact transaction verifiers regarding charges that are not verified in a timely manner.

5.6.d.i  Delinquent Transaction Verification

If, during auditing activities, Payment Services–Card Programs discovers a cardholder or their PCDES is delinquent in verifying the cardholder’s transactions, Card Programs may:

• Reach out to the cardholder requesting a status update
• Escalate notification of the delinquency to the cardholder’s supervisor and AFO, requesting a status update
• Suspend the procurement card until further information, discussion, or verification activity takes place
• Expense the transaction(s) directly to the department, if the verifier fails to complete their fiscal duties. In such a case, Card Services attempts to contact the appropriate AFO for fund assignment information. If funding information is not received, Payment Services determines which departmental account to charge for the transaction based upon the procurement card’s default cost center.

5.6.e    Discrepancies

The cardholder or PCDES is responsible for locating and investigating any discrepancies on records for procurement cards they oversee.

For assistance, contact Card Programs; e-mail purchasing.card@wsu.edu.

5.6.e.i   Fraud

Fraud is defined as an unauthorized charge, which means the charge was never initiated by the cardholder or delegated user.

When an unidentifiable transaction is found on the card, the cardholder or PCDES determines whether the transaction is authorized by:

• Reviewing the transaction documentation.
• Contacting the merchant.
• Contacting any temporary card delegates.
• Using any other means necessary to determine or disprove the authenticity of the purchase.

If the transaction is identified as being unauthorized and fraudulent, the cardholder must immediately contact the issuing bank at the telephone number located on the back of the card. If not able to contact the issuing bank, the cardholder may contact Card Programs to request they contact the issuing bank on the cardholder’s behalf. The cardholder must review all recent transactions and transaction authorizations to communicate a comprehensive list of transactions that are fraudulent to the issuing bank or Card Programs.

The cardholder or Card Programs (if requested) should identify and report each fraudulent transaction to the bank no later than 60 calendar days from the transaction date.

The cardholder’s department is liable for the full amount of any fraudulent transaction not reported within this time period.

Note: The cardholder notifies Payment Services−Card Programs if the issuing bank closes the account because of a fraudulent charge. The issuing bank creates a new account number and sends a replacement card to Payment Services−Card  Programs, which e-mails the cardholder when the card arrives.

5.6.e.ii    Disputes

A dispute is defined as a charge initiated by the cardholder or delegated user, resulting in unexpected charge(s) or problems with products or delivery for which the merchant refuses to meet University needs or issue a credit to the University.

When an issue with an authorized transaction occurs requiring a refund, the cardholder must:

1. Exhaust all possibilities of reaching a satisfactory result or obtaining the refund from the merchant
2. Keep a record or log of all efforts made to come to a resolution or obtain a refund, as documentation is needed later in the process
3. Contact Card Programs to initiate a dispute case. When asking to initiate a dispute, the cardholder must provide a full background description of the issue and include the documentation of the efforts made to obtain a refund from the merchant.

The WSU procurement card manager or specialist initiates a dispute with the procurement card issuing bank.

Card Programs may initiate a dispute:

• Electronically within 60 days of the transaction date, or
• In writing within 120 days of the transaction date.

Documentation of efforts to resolve issue with merchant must be included in either timeline.

If 120 days or more have passed since the transaction date, Card Programs initiates a dispute, but refund of charges is unlikely at this point.

If the dispute is not able to be resolved with the merchant or the card issuing bank, the department is liable for the full amount of the transaction(s).

5.6.e.iii   Returns

If goods are to be returned, the cardholder must take all the following actions:

• Obtain return authorization from the supplier and include this authorization inside and on exterior of the box.
• Contact the campus central receiving department for pickup (see UPPM 70.14 and 80.15).
• Secure the appropriate credit from the vendor when the goods are returned.
• Retain return documentation.
• Attach the itemized documentation for each transaction verification related.
• Confirm that all three retained document sources match for each transaction and contain no discrepancies or issues of any kind.
• File the itemized documentation. (See Section 5.8.a.i regarding records retention.)

5.6.f     Third-Party Payment Processors

If a merchant/supplier chooses to use a third-party payment processor (such as PayPal) to process payment on a WSU Procurement Card, the payment must be processed through a departmental account (no personal account may be used).

5.6.f.i   Required Documentation

The cardholder or delegated purchaser must obtain the following documentation (in one or multiple documents):

• Confirming payment by both the third-party payment processor and end merchant;
• Naming both the payment processor and end merchant; and
• Verifying the PCard charge amount matches the payment and end merchant receipt.

5.6.f.ii  Required Workday Transaction Verification

The Workday transaction verifier must comply with the “3rd Party Payment Verification Process” published under Verifying PCard Transactions on the WSU Card Programs – Procurement Cards webpage.

Completion of the verification as instructed in the verification process enables Workday reporting of these transactions that meets audit requirements.

5.7    Maintaining Cards

5.7.a    Card Storage

The cardholder is responsible for keeping cards in a locked drawer or security box when not in use.

5.7.b    Lost, Stolen, Misplaced

To prevent fraudulent use and loss to the University the cardholder or department must complete all the following steps in the case of a card being lost, stolen, misplaced, or involved in any kind of internet data breach:

1. Immediately report lost, stolen, misplaced, or hacked cards to the issuing bank’s 24-hour customer service department; telephone 1-800-316-6056.

   Note: If access to this policy (UPPM 70.08) is not available, the customer service telephone number is located on the back of the card, on the documents that accompanied the card, and at the Payment Services – Card Programs.

2. Immediately after contacting the issuing bank, report lost, stolen, misplaced, or hacked cards to Payment Services−Card Programs; e-mail card@wsu.edu; or telephone 509-335-2032 or 509-335-2034.
3. Notify the cardholder’s direct supervisor, departmental finance team, and/or the AFO.

The cardholder or PCDES:

• Monitors the missing card’s transaction details using Workday;
• Identifies any unauthorized charges; and
• Notifies the issuing bank or Payment Services–Card Programs if any charges are fraudulent.

5.8    Policy Compliance

The following actions violate University policy:

• Purchasing restricted items with a procurement card or making purchases from restricted classes of vendors. (See the restricted purchases list in Section 5.2)
• Failure to verify procurement card transactions in a timely manner, as required.
• Failure to attach complete documentation of purchases in Workday.
• Failure to safeguard and properly monitor the locations of procurement cards.

5.8.a    Compliance Review/Audit

All transaction records are subject to review or audit by:

• The departmental approving PCDES, supervisor, manager, and/or AFO
• Payment Services–Card Programs personnel
• Purchasing Services personnel
• Information Technology Services Chief Security Officer (e.g., PCI Compliance, Integration SOX Compliance, etc.)
• Staff of the Office of Internal Audit
• State of Washington Auditors
• Other auditors (e.g., federal auditors)

Note: All procurement card activities are public records.

5.8.a.i  Records Retention

Procurement card records must be retained in Workday for:

• Six years following the end of the fiscal year in which the transactions are made (for state-supported transactions); and/or
• Six years following the end of the grant period in which the transactions are made (for grant-supported transactions).

See UPPM 90.01 and the PRF Records Retention and Disposition website for more information regarding records retention requirements.

5.8.b    Consequences of Policy Violation

The University may take any or all of the following actions for violations of University procurement card policies:

• Payment Services–Card Programs may issue a written warning to the cardholder or PCDES.
• Payment Services–Card Programs may issue copies of written warnings to the cardholder’s direct supervisor, area finance officer, responsible department chair, and/or the Office of Internal Audit.
• Payment Services–Card Programs may suspend or cancel the card. If an employee’s procurement card is cancelled due to policy violation, access to other University cards may be cancelled and/or denied.
• Payment Services–Card Programs may require that the cardholder or the PCDES receive additional training before a card is reinstated or reissued.
• Payment Services–Card Programs or the responsible department may report the violation to the appropriate vice president and/or the Office of Internal Audit.
• The University may take disciplinary action against the employee. See UPPM 60.50.
• The University may pursue employee termination or criminal prosecution.
• The University may take appropriate recovery actions as permitted by law.

The cardholder may be held responsible for the repayment of all fees associated with the usage of the card, including repayment of fees and penalties associated with unauthorized use of the card or program.

6.0 Procurement Card Chain of Custody

Due to the potential financial impact associated with custody of a procurement card, chain of custody processes are strictly enforced and are required to be documented in writing.

6.1    Card Expiration

The procurement card remains active and may be used through the end of the month of expiration. Replacement cards are automatically created by the issuing bank and shipped to Payment Services–Card Programs well in advance of the card’s expiration date.

6.2    Replacing or Receiving a Card

• Prior to the expiration date listed on the front of the card, or in case of fraud, lost or stolen card, or name change, the issuing bank automatically creates a replacement card.
• The bank sends the card to Payment Services–Card Programs.
• Card Programs receives the reissued card and notifies the cardholder by e-mail.
• Cards may be picked up in Payment Services–Card Programs; French Administration Building 240 K. Photo ID is required for in-person pickup by the cardholder or their “runner.”
• Alternate delivery of cards may be arranged with Card Programs, by providing e-mailed instructions from the cardholder’s official WSU e-mail account including:
  • Full USPS mailing address for campus or remote work location delivery.
  • Rush delivery by USPS Priority or Express Mail is available, or other delivery option if preferred by cardholder. Cardholder or department must provide funding source if requesting special delivery.

• The cardholder is responsible for destroying any card for which the issuing bank has sent a replacement.

Note: If a procurement card is not used for the 12 consecutive months prior to expiration, the issuing bank places the account on hold due to lack of activity and issues no replacement card. Contact the WSU procurement card manager or specialist for assistance, if applicable.

7.0  Card Cancellation

7.1    Cancellation Mandates

WSU procurement cards must be cancelled if:

• Cardholder leaves the University (see also UPPM 60.74);
• Cardholder transfers to a position in a new cost center (see also UPPM 60.74); or
• Cardholder’s job responsibilities change, no longer requiring the use of a procurement card.

7.2    Cancellation Process

To cancel a procurement card, the cardholder or approving supervisor must submit a written request to Payment Services–Card Programs; e-mail purchasing.card@wsu.edu.

The written request may be submitted by e-mail or a completed Procurement Card Change Request form.

The cardholder’s department may ask the cardholder to destroy the cancelled card.

7.3    Cancellation for Cause

The Payment Services–Card Programs manager may cancel a procurement card because of policy violation or other misuse of a procurement card by the cardholder.

7.4    Cancellation Notification(s)

Payment Services–Card Programs notifies the cardholder and the cardholder’s direct supervisor and/or AFO when the account/card has been cancelled due to cancellation mandates (see Section 7.1).

If a WSU credit card is cancelled for cause (misuse or violation of policy), one of the following parties may provide cancellation notification to the employee, as determined appropriate at the highest level involved:

• Card Programs;
• Cardholder’s direct supervisor;
• Area finance officer;
• Department director;
• Internal Audit; or
• Human Resource Services.

The cardholder is responsible for destroying their cancelled procurement card.

8.0  Resources and References

• Workday Reference Guides
• WA State Small Purchases Training (Online)
• WA State Purchasing and Procurement Ethics Training (Online)
• Percipio Learning System (for required WSU training courses; see Section 4.1)
• Procurement Card Application (from J.P. Morgan Chase website; see Section 4.3)
• JPMorgan Chase’s PaymentNet website (see also Section 5.4)

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Revisions:  Aug. 2025 (editorial change); July 2025 (editorial change); June 2025 (Rev. 645);August 2021 (Rev. 574); Jan. 2021 (Rev. 560); Sept. 2014 (Rev 438); Mar. 2010 (Rev. 357); Apr. 2008 (Rev. 320); July 2006 (Rev. 282); Aug. 2005 (Rev. 263); Nov. 2003 (Rev. 237); Mar. 2003 (Rev. 226); Dec. 2002 (Rev. 223); June 2002 (Rev. 209); Aug. 2001 (Rev. 193); Apr. 2001 (Rev. 183); Aug. 2000 – new policy (Rev. 167).